Georgian economic growth in 2021 driven mainly by the recovering external sector - Figure 1 - Georgia, Real GDP Growth Rate (Y/Y)

According to the Monetary Policy Report, among the reasons behind the upward revision is the stronger-than-expected impact of pent-up demand. [...] The main driving forces of this growth are final consumption and net exports (due to a significant increase in exports of goods, which has been accompanied by a partial recovery of the tourism sector). [...] Georgia’s Exports Started to Recover In September, Georgia’s exports experienced an 12.8% annual growth, which was mainly driven by increased export/re-export of motor cars and telephones to Azerbaijan; export of apparel, ferroalloys and scrap metal to Turkey; export of ferro alleys, potatoes, cigarettes and cigarillos, and mineral waters to Russia; export/re-export of spirits and telephones to Ar. [...] In September, the number of international visitors increased by 348.8% yearly (decreased by 71.1% compared to the same month in 2019), while the increase in tourist numbers (visitors who spent 24 hours or more in Georgia) amounted to 401.3% (decreased by 61.1% compared to the same month in 2019). [...] Real Effective Exchange Rate Appreciated Monthly and Depreciated Yearly The depreciation of the Real Effective Exchange Rate (REER) had a small but positive contribution to the real GDP growth projections.